Sure, large organizations like Social Security or the IRS can make mistakes. In this day and age, identity theft is also a big problem. Anyone who runs into these kinds of problems (declared dead by SSA, IRS refunds conficated, etc.) should order their free credit reports and review them carefully to make sure they are not victims of ID Theft. If you are, that is another whole ball game and you will have your work cut out for you but that is too big a subject to discuss in detail here.
The important point is to make sure the "bad" thing that happened was just some bureaucratic mistake and not ID Theft.
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